Ribbon Communications (NASDAQ: RBBN) is one of 65 publicly-traded companies in the “Communications & Networking” industry, but how does it compare to its competitors? We will compare Ribbon Communications to similar businesses based on the strength of its earnings, analyst recommendations, institutional ownership, valuation, risk, dividends and profitability.

Risk and Volatility

Ribbon Communications has a beta of 2.08, indicating that its stock price is 108% more volatile than the S&P 500. Comparatively, Ribbon Communications’ competitors have a beta of 1.18, indicating that their average stock price is 18% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Ribbon Communications and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ribbon Communications 1 1 4 0 2.50
Ribbon Communications Competitors 392 2390 3977 165 2.57

Ribbon Communications presently has a consensus price target of $7.05, suggesting a potential downside of 7.24%. As a group, “Communications & Networking” companies have a potential upside of 17.65%. Given Ribbon Communications’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Ribbon Communications has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

32.3% of Ribbon Communications shares are owned by institutional investors. Comparatively, 62.1% of shares of all “Communications & Networking” companies are owned by institutional investors. 7.7% of Ribbon Communications shares are owned by company insiders. Comparatively, 12.4% of shares of all “Communications & Networking” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Ribbon Communications and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ribbon Communications -8.82% -1.87% -1.32%
Ribbon Communications Competitors -4.10% -9.52% -1.07%

Valuation & Earnings

This table compares Ribbon Communications and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ribbon Communications $252.59 million -$13.93 million -16.89
Ribbon Communications Competitors $3.30 billion $346.31 million -92.98

Ribbon Communications’ competitors have higher revenue and earnings than Ribbon Communications. Ribbon Communications is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Ribbon Communications competitors beat Ribbon Communications on 9 of the 12 factors compared.

Ribbon Communications Company Profile

Sonus Networks, Inc., formerly Solstice Sapphire Investments, Inc., is a provider of networked solutions for communications service providers and enterprises to help them secure and unify their real-time communications infrastructures. The Company helps communications service providers and enterprises hold the session initiation protocol (SIP) and fourth generation (4G)/long term evolution (LTE)-based solutions, including voice over Internet protocol (VoIP), voice over wireless fidelity (VoWiFi), video and unified communications (UC) by securing and enabling Internet Protocol (IP) networks. Its products include session border controllers (SBCs), diameter signaling controllers (DSCs) and VoWiFi solutions. Sonus Products include Sonus GSX9000 Open Services Switch, Sonus T7000 Intelligent Switching System, Sonus Diameter Signaling Controllers, Sonus Signal Transfer Points, Sonus PSX Policy & Routing Server, Sonus WebRTC Services Solution, and Sonus Network Management Solutions.

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